Global Modular Construction Market Expected to Reach USD 139.9 Billion by 2033 - IMARC Group

November 29, 2024 | Chemical & Materials

Global Modular Construction Market Statistics, Outlook and Regional Analysis 2025-2033

The global modular construction market size was valued at USD 90.6 Billion in 2024, and it is expected to reach USD 139.9 Billion by 2033, exhibiting a growth rate (CAGR) of 4.9% from 2025 to 2033.

Modular Construction Market

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The modular construction industry continues to expand as there are various economic, environmental, and sociological aspects that keep driving its growth. The increasing need for cost-effective and relatively quicker methods in construction is most notable, particularly in urban areas where the shortage of housing is utmost. Also, the rising number of natural catastrophes such as earthquakes has prompted the use of modular alternatives more quickly. The year 2023 had a total of 1,712 earthquakes with a minimum magnitude of five or more which affirms the need for efficient, easily constructible structures. Modular type structures possess higher strength and can also be erected very fast which comes in handy in regions that experience disasters frequently. As sustainability issues become more prominent, and as the demand for sustainable construction methods rises, the market continues to grow.

The modular construction market is being propelled by the growing emphasis on efficiency, cost reduction, and environmental sustainability. A key driver is the increasing urbanization and the need for rapid housing and infrastructure development. The robust performance of the construction industry is also contributing significantly. According to a research report by Deloitte, in 2024, the industry saw a 10% rise in nominal value added and a 12% increase in gross output, with spending surpassing $USD 2 Trillion in the first half of the year. Modular construction is preferred for its ability to streamline project timelines, reduce material waste, and lower labor costs. Additionally, advancements in technology and materials are enabling modular techniques to meet diverse requirements, further driving adoption across residential, commercial, and industrial sectors.

Global Modular Construction Market Statistics, By Region

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest modular construction market share, driven by the region's robust construction industry, increasing demand for sustainable building solutions, and growing urbanization.

North America Modular Construction Market Trends:

The modular construction market in North America is growing, driven by the strong growth in the construction industry in the region. According to Statista, the U.S. construction market in 2023 is nearly valued at USD 2 Trillion, which is projected to exceed USD 2.2 Trillion by 2027. This includes not only the growth in the residential sector but also non-residential, as well as infrastructure projects. Modular construction saves money and shortens the length of time needed to complete projects. It is extra important in cities, where growing needs for homes and commercial space are driving its adoption. Also, these developments are supported by sustainability initiatives pushing modular construction growth in the region as well.

Asia Pacific Modular Construction Market Trends:

Urbanization and affordable housing demand are leading to the expansion of the market in the Asia Pacific region. Modular adoption is growing in countries like China, India, and Japan where the government initiates affordable construction practices. Modular is gaining ground in all regions due to the way it reduces project timelines and costs, apart from helping to address housing shortages. New technology and eco-friendly components were additional boosters for the market growth. It's no different than the commercial and residential sectors, which still strongly energize the demand trend for modular construction solutions.

Europe Modular Construction Market Trends:

As the construction industry increasingly focuses on sustainability and energy efficiency, the modular construction market in Europe is experiencing more growth. Strict regulations on construction combined with a rising demand for green building practices have led to an increase in the demand for modular buildings. Countries like Germany, the UK, and the Nordics are in the forefront of using modular techniques to solve the issue of workforce shortages while speeding up the completion rates of projects. Those are the countries where the public is investing more in smart technologies and off-site construction methods. The growth potential for modular construction comes from the health and education sector as they're rapidly investing in building infrastructure that is cost-effective.

Latin America Modular Construction Market Trends:

The market is growing firmly in Latin America due to the requirements of the region in terms of affordable housing and infrastructural development. Modular techniques are adopted in countries such as Brazil, Mexico, and Chile for the construction of housing deficits and challenges of urban expansion. One of the main reasons for the popular use of modular construction is highly disaster-prone areas, which encourage fast and strong solutions. Modular schools, hospitals, and other commercial spaces are invested in by governments to strengthen public infrastructure. In addition, this trend is prevalent due to the increasing awareness of sustainability and the cost efficiency gained by using prefabricated methods.

Middle East and Africa Modular Construction Market Trends:

The market in the Middle East and Africa is gaining momentum, driven by a growing focus on fast-tracked infrastructure projects and urban development. Countries like the UAE, Saudi Arabia, and South Africa are increasingly adopting modular techniques to meet the demand for residential, commercial, and hospitality projects. The region’s harsh climate conditions make modular construction an attractive option due to its ability to withstand extreme temperatures. Moreover, government initiatives like Saudi Arabia’s Vision 2030 and infrastructure investments across Africa are further accelerating the adoption of modular solutions.

Top Companies Leading in the Modular Construction Industry

Some of the leading Modular construction market companies include Algeco, Balfour Beatty plc, Bouygues, Etex Group, Guerdon LLC, KLEUSBERG GmbH & Co KG, Laing O'Rourke, Larsen & Toubro Limited, Lendlease Corporation, Red Sea International, Skanska AB, Taisei Corporation, etc. On 29^th July 2024, Germany-based Algeco GmbH placed an order for five Konecranes E-VER electric forklifts. These forklifts, equipped with customized spreaders, are designed to handle specialized containers utilized in the construction of modular buildings. The delivery of these forklifts is scheduled for the third quarter of 2024, with Algeco's facilities in Paderborn and Stockstadt set to receive them.

Global Modular Construction Market Segmentation Coverage

On the basis of the type, the market has been bifurcated into permanent and relocatable, wherein permanent represents the most preferred segment, as permanent modular construction offers long-lasting, durable structures that meet stringent building codes and provide a solution for large-scale infrastructure projects, such as hospitals, schools, and office buildings. Furthermore, the growing demand for eco-friendly construction methods and the emphasis on reducing project timelines have boosted the adoption of permanent modular construction globally.
Based on the module type, the market is categorized into four sided, open sided, partially open sided, mixed modules and floor cassettes, modules supported by a primary structure, and others, amongst which modules supported by a primary structure dominates the market. This is primarily driven by their versatility, ease of integration with traditional construction methods, and ability to support complex architectural designs. Additionally, these modules are highly preferred in large-scale projects where structural integrity and load-bearing capacity are critical.
On the basis of the material, the market has been divided into steel, concrete, wood, plastic, and others. Among these, steel dominates the market due to its superior strength, durability, and ability to withstand extreme weather conditions. Steel modules are also more sustainable as they can be recycled and reused, aligning with the growing trend toward sustainable construction. Moreover, steel's lightweight properties make it easier to transport and assemble, further contributing to its widespread use in modular construction.
Based on the end use, the market is categorized into residential, commercial, education, retail, hospitality, healthcare, and others. Among these, residential dominates the market due to the increasing demand for affordable and fast housing solutions, especially in urban areas. Modular construction is becoming increasingly popular for residential projects because it reduces construction time, minimizes waste, and offers cost-effective solutions. The trend is further bolstered by government initiatives to provide housing for the economically weaker sections of society.

Report Features	Details
Market Size in 2024	USD 90.6 Billion
Market Forecast in 2033	USD 139.9 Billion
Market Growth Rate 2025-2033	4.9%
Units	Billion USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Type Module type Material End Use Region
Types Covered	Permanent, Relocatable
Module Types Covered	Four Sided, Open Sided, Partially Open Sided, Mixed Modules and Floor Cassettes, Modules Supported By a Primary Structure, Others
Materials Covered	Steel, Concrete, Wood, Plastic, Others
End Uses Covered	Residential, Commercial, Education, Retail, Hospitality, Healthcare, Others
Regions Covered	Asia-Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered	United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered	Algeco, Balfour Beatty plc, Bouygues, Etex Group, Guerdon LLC, KLEUSBERG GmbH & Co KG, Laing O'Rourke, Larsen & Toubro Limited, Lendlease Corporation, Red Sea International, Skanska AB, Taisei Corporation, etc.
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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